Medicalgorithmics S.A. — Regulatory Filings 2024

Feb 12, 2024

Subject:Medicalgorithmics S.A. Signs Global Distribution Agreement with BittiumBiosignals Ltd, a Subsidiary of Nasdaq Helsinki Listed BittiumCorporation

ReportNumber: 4/2024

Date:February 12, 2024

LegalFoundation: Article 17(1) of the Market Abuse Regulation (MAR) -confidential information.

MedicalgorithmicsS.A., headquartered in Warsaw (_quot;the Company_quot;), is to announce a newdistribution agreement ('Distributorship Agreement') with BittiumBiosignals Ltd, a subsidiary of the globally recognized BittiumCorporation, listed on NASDAQ Helsinki and known for its expertise inarrhythmia diagnostic devices (_quot;the Agreement_quot;). This Agreement enablesBittium (_quot;the Partner_quot; or _quot;Distributor_quot;) to distribute the Company'ssoftware as part of its product offerings. Although the software will bemarketed under the Distributor's brand, it will be clear to medicalclients and diagnostic facilities that Medicalgorithmics is the providerof both the software and the diagnostic reports.

Under theAgreement, the Company grants the Partner the rights to distribute itssoftware globally as a non-exclusive Distributor. The software includescloud-based solutions and artificial intelligence (AI) algorithms foranalyzing ECG signals from diagnostic sessions using the Partner'sdevices. It also facilitates the verification of AI results by ECGtechnicians and doctors and the preparation of medical reports forpatient diagnostics. The software will be integrated to work exclusivelywith signals from the Partner's distributed devices.

The Agreementoutlines the terms for end-user license use in an annex, and the Companywill provide technical support to the Distributor's clients as specifiedin another annex to the Agreement. The Partner will promote theCompany's Software to its clients globally through Bittium's saleschannels. This Agreement is open-ended with a 12-month notice period fortermination and includes standard market provisions typical for suchcontracts.

Pricing for thesoftware access will be based on the rates valid on the date the Partnerplaces an order, and revenue sharing will be the model for financialsettlement between the parties. This means earnings will be tied to therevenues the Partner generates from ECG studies and analyses using theMedicalgorithmics software. Service prices may be adjusted annually,based on general price changes announced by the Company, with a cap onincreases set at 5% or the annual inflation rate in Poland, as reportedby the Central Statistical Office, whichever is higher.

Given the globalreach of this Agreement, covering many countries across all continentswhere Bittium operates, the Company believes this partnership holdssignificant potential. While it's challenging to predict minimumrevenues due to the variability in device usage and service pricingacross markets, the Company sees the Partner potentially becoming one ofits largest clients in the coming years.

This partnershipbuilds on a previous memorandum of understanding that assessed thepotential for long-term collaboration in commercializing the Company'scloud ECG diagnostics solutions. The implementation of this Agreement,following just three months after the memorandum, highlights theCompany's ability to execute strategic initiatives, offering significantpotential benefits for both the Partner and its clients through the useof the Company's software.

BittiumCorporation, with over 35 years in advanced radio communicationtechnologies, specializes in telecommunications and connectivitysolutions. In addition to medical technology products and services forcardiology and neurophysiology, Bittium serves a global customer baseacross all continents. With revenues of 75.2 million euros in 2023, moreinformation about Bittium Corporation can be found at:https://www.bittium.com.